A Company Purchased Two New Delivery Vans for a Total

question 17

Essay

A company purchased two new delivery vans for a total of $250,000 on January 1, 2013. The company paid $40,000 cash and signed a $210,000, three-year, 8% note for the remaining balance. The note is to be paid in three annual end-of-year payments of $81,487 each, with the first payment on December 31, 2013. Each payment includes interest on the unpaid balance plus principal.
(1) Prepare a note amortization table using the format below:
$\begin{array}{|c|c|c|c|c|c|}\hline \begin{array}{c}\text { Period } \\\text { Ending Date }\end{array} & \begin{array}{c}\text { Beginning } \\\text { Balance }\end{array} & \begin{array}{c}\text { Debit Interest } \\\text { Expense }\end{array} & \begin{array}{c}\text { Debit Notes } \\\text { Payable }\end{array} & \text { Credit Cash } & \begin{array}{c}\text { Ending } \\\text { Balance }\end{array} \\\hline 12 / 31 / 13 & & & & & \\\hline 12 / 31 / 14 & & & & & \\\hline 12 / 31 / 15 & & & & & \\\hline\end{array}$ (2) Prepare the general journal entries to record the purchase of the vans on January 1, 2013 and the second annual installment payment on December 31, 2014.

Understand the role of extraversion in predicting certain psychological and physiological traits.

Explain Carl Rogers' approach to assessing the effectiveness of psychotherapy.

Understand the concepts and processes in conducting a behavioral assessment, including operational definitions and interrater reliability.

Understand the concept of earnings per share (EPS) and how it is affected by mergers and acquisitions.

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Definitions:

Deferred Tax

The amount of income tax payable/recoverable in future reporting periods in respect of temporary differences and tax losses.

Balance Date

The date on which a company's financial year ends and financial statements are prepared to reflect the company's financial position.

Accounting Adjustments

Entries made in accounting records at the end of a period to correct accounts before the financial statements are prepared.

Temporary Differences

Differences between the carrying amount of an asset or liability in the statement of financial position and the asset’s or liability’s tax base.